BUILDING A NEW CUSTOM HOME 101:
How It Works, What To Do And Things To Consider Every Step Of The Way
A new custom home is a very significant investment, and building one will be one of the most exciting things you will do in a lifetime. Itโ��s important to be informed and organized when you begin, so that you will be certain to enjoy a successful result. The following is a โ��nuts and boltsโ�� summary of the basics to help you get started.
LETโ��S TALK MONEY
How it works
The home price that fits your budget will help you decide on the appropriate community where you will build, and the style of home that works for you. Itโ��s a waste of time to start the process until you have some idea what you can afford.
What to do
Unless you are fortunate enough to have cash in the bank, you will probably need a loan to close on your custom dream home when it is complete. Make an appointment with a good lender. Get qualified! Learn about financing options. Determine how much money you need for a down payment and exactly how much you can handle for a monthly house payment. Even if you have cash in the bank, your builder and/or any real estate agent you might work with will need to see verification of these funds at time of contractual purchase agreement. Lastly, be prepared for over runs. It always costs a little more than you plan because of changes you decide to make along the way.
Things to consider
There are all kinds of lenders and all kinds of loans available. You may want to talk to a mortgage broker as well as a mortgage banker. There is a lot of information available on the internet. Learn all you can so you have a list of questions when you sit down with a lender.
LOCATION LOCATION LOCATION
How it works
The next step is to determine where you want to live. What type of community in what part of the city will most meet your lifestyle requirements and provide you with the most happiness. There are a limited number of communities where custom homes are being built, so this may require some early research before you start driving. Find a community that sells individual lots to individual custom builders. The other alternative is community where one builder builds the same floor plan again and again in the community. This might work for you, but you wonโ��t be building a custom home. The internet is a good source of information.
What to do
Drive the streets in the communities. See if you like the feel of the neighborhood. Talk to people who live there. Ask questions about their likes and dislikes.
Things To Consider
Where do you work? Where will your children go to school? Are you willing to commute in exchange for more space, better views, cleaner air and/or trees?
What amenities do you enjoy, what conveniences does your family require and what is nearby, i.e. medical facilities, leisure facilities, shopping, parks, hiking/biking trails, etc.?
You might also consider the potential for resale if you think you may move again in the near future.
THINK ABOUT THE STYLE OF HOME YOU WANT TO BUILD
How it works
There are all shapes and sizes of homes, and there are all kinds of styles and decors. Some of this will be dictated by the community where you choose to build. Remember however, that this is your custom dream home, so begin with a written list of your specific wants and needs.
What to do
Make a file of pictures you like from magazines; pull pictures of inside and outside living areas. These will help you later when working with your team of experts. Drive neighborhoods and take pictures of homes you like. Visit model homes and write down lots of ideas. Nobody knows what your dreams are unless you are prepared to tell them. Your drawings donโ��t need to be any thing sophisticated; but it will help to make a rough sketch of the layout you have in mind.
Things to consider
Ranch or two-story? How many bedrooms do you require? How many garage spaces are necessary? Is it important to have a walk-out basement? Will you want to finish the entire basement? Is it important that you have a formal dining room and/or formal living room? Do you have a piano or a pool table or other large pieces of furniture that must fit into certain rooms? What are your special interests? Do you love to cook? Do you need a work space in the garage? Do you want a theatre room, sewing room, studio for painting or music, special entertainment areas? What about outside living areas,
outdoor kitchen, patio with views? And do you like contemporary lines, a lodge look, or maybe an old world style?
NOW ITโ��S TIME TO CHOOSE YOUR TEAM OF EXPERTS โ��
How it works
This step can be a little confusing. What to do first? The home site, the architect, then the builder, and do I need a realtor? OR, the builder, the home site, shall I hire an architect and/or a realtor? OR, a realtor, the builder, the home site and then an architect? See what I mean???
What to do
Keep it simple. Hire professionals to help you keep from making mistakes; but take the time to hire the best, and donโ��t pay for services you donโ��t really need.
Things to consider
Letโ��s start with the home site. You may have a piece of property that you have owned for years and a great desire to build on that very special piece of property. In this case, you may want to search for a builder who is willing to build on your site. That builder may have an architect on staff in which case you wouldnโ��t need an architect. Many builders who build homes in custom communities will also consider building โ��off site.โ��
Now consider an architect. If you feel you need assistance in creating your dream home on paper, you may want to employ an architect. In this case, when you begin your builder search, you will already have a great set of plans. It may be wise to choose your home site first since working drawings will likely need to be adapted to each site.
You donโ��t need a realtor to build a custom home, however, if you feel you need someone to represent you in the contractual transaction, you may want to bring a realtor into the picture. And you may find that an experienced real estate agent can be very helpful in offering information about communities, builders, prices and contacts to assist you in the building process; especially if you are new to the area. Many custom home communities have real estate agents selling the home sites and representing the builders.
Try this scenario โ�� itโ��s pretty typical. Choose a great custom home community. Find a home site you like in that community; one that is being developed or one that is already owned by one of the builders creating custom homes in the community. The builder will likely have a design staff who can work from your sketches and list of wants and needs to create working drawings.
STOP HERE AND CONSIDER STANDING INVENTORY
How it works
Chances are, if you have decided on a price and a style and have located a great community, there are completed luxury custom homes or homes soon to be completed in the community. Builders call these custom homes โ��specsโ�� (speculative properties or standing inventory).
What to do
Visit all the โ��specsโ�� in your chosen community to see if any of these custom homes meet your list of needs and wants and are within your price range. If the prices arenโ��t right at this time, you are probably in the wrong community. Time for more research!
Things to consider
Can you buy one of these homes for a considerably lower price than it would cost to start from scratch? Can you move in right away rather than wait until your new custom home is designed and built? Does one of these properties match all or most of the items on your wants/needs list? Is there still time to make changes or make some of the design choices, i.e. tile, granite, carpet, etc?
OK, SO THERE IS NOT A โ��SPECโ�� THAT WORKS FOR YOU - YOU STILL NEED A BUILDER AND A HOME SITE
How it works
Letโ��s assume that you have chosen a community with home sites developed and ready for building. Many developers sell home sites only to their approved list of builders, so in some cases, the site you like may dictate the builder you decide to work with. Or you might find a home site not yet released for sale and put your name on it. Then choose your builder from the list of those building in the community and the builder will buy the lot when it becomes available.
What to do to choose a home site
Visit the sales organization for the community. Request a plat map of the community indicating the home sites available or soon to be available. Get out and walk the sites.
Things to consider when choosing a home site
Are views important to you? How about trees? Do you want morning sun on your driveway or on your patio? How do you feel about a walk-out basement? This will require a site with a slope. Think about the size of the yard. You may need space for entertaining or for childrenโ��s toys; or maybe you prefer a smaller site with a small space to maintain. Ask about soils conditions, drainage, zoning and codes.
What to do to choose a builder
Visit the sales organization in the community. Learn all you can about how home site sales are handled. This is important if home sites are sold only to builders. What are the procedures? Then learn all you can about the builders approved in the area. Visit all the โ��specsโ�� for sale in the neighborhood and compare the quality and features provided by the various builders. Talk with the neighbors and also with the subcontractors working on homes presently under construction. Ask them which builder they recommend and why. Visit the builderโ��s web site. Ask for homeowner and banking testimonials. When you narrow it down, donโ��t hesitate to ask for references; then make your decision.
Things to consider when choosing a builder
Does the builder provide a good warranty program? What is covered and for how long?
What do homeowners, bankers and contractors say about this builderโ��s history, stability reputation and follow up? A very serious consideration is what the industry calls โ��customer service.โ�� Hopefully nothing will go wrong after you take possession of your new home, but in the event something does, a good builder will be there to make it right for as long as specified in the warranty agreement. When you visited other homes in the community built by the builder, were you impressed with the style, the quality and the features in the homes?
THE BUILDING PROCESS
How it works
Itโ��s time to sit down with your builder and review your sketches and list of wants and needs. If you already have architectural plans you are a step ahead. Either way, the builder will have someone on staff who can design new plans or help modify your existing plans to fit the appropriate home site. You may expect to pay a nonrefundable deposit (this deposit will usually be applied to your total home price) to have working drawings prepared. The plans are then put out to the subcontractors for bid. Once all the bids are in, a price can be determined. It is not uncommon when building a custom home to pay cost plus a percentage for the final sales price. When you give the go ahead and itโ��s time to break ground, a contractual agreement will be signed by you as the buyer and the builder as the seller. You will likely pay another nonrefundable deposit at this time; and as before, this money will go toward your final closing price. It will take somewhere between 12 to 16 months to build a custom home, (possibly more) often depending on the number of changes that are made. There are always some changes; expect it! When you make changes, the purchase agreement needs to be amended and the price changed; or in some cases, you will pay an additional deposit for the custom change. Be sure you understand the change-order procedure at time of contractual agreement. When the home is complete, the builder will obtain a certificate of occupancy from the county building department. Then, the builder will invite you to a homeownerโ��s orientation meeting where you will learn how your home functions and how to maintain it. This meeting is often referred to as the โ��walk through.โ�� This is the appropriate time to ask lots of questions. A final settlement date will be made where you will sign closing papers, including loan documents if you are financing the new home. You take title at closing and you will leave with keys to your new dream home! Congratulations!!!
What to do
Visit the building site often during construction. Watch for things that you might not understand or you want to change. Remember however, that you canโ��t negotiate with the subcontractors; you will need to visit with your realtor or the builder regarding any changes. Within the time frames provided by the builder, visit showrooms for tile, carpet, light fixtures, appliances and any other items that require your decisions. Communicate with the builder regarding forecasted completion and closing dates. Work with your lender if you are getting a new home loan to be sure all is in order by closing time. Start thinking about a moving company and arrange for your personal items and furniture to be moved. Never move any of your belongings into the home before you take possession. There is no homeownerโ��s insurance to protect you.
What your builder will do
Although not always the case, your builder will usually provide the construction financing and pay all the subcontractors as the work is properly completed. It is the builderโ��s job to provide the appropriate insurance for the job site; qualify and supervise the subcontractors and obtain all required permits. The builder will research and recommend the most efficient and economic products and guide you in selecting decorator items like tile, carpet, light fixtures and more. Your builder will provide a warranty program at closing
That pretty much wraps it up! In summary, my best advice is to contract with a team of experts, experienced people you can trust, then relax, enjoy the building experience and have fun planning your new lifestyle in your wonderful new luxury custom home.
Written by Marianne Wise for Timber Ridge Properties
ไม่มีความคิดเห็น:
แสดงความคิดเห็น